The Genius Act, aimed at regulating stablecoins in the USA, is gaining support from experts and legislators. US crypto czar David Sacks has expressed his views on the importance of this bill.
Support from David Sacks
David Sacks stated in a Bloomberg interview that the Genius Act could significantly streamline the stablecoin market in the US and boost industry trust. He noted that the act would help traditional banks and financial institutions to confidently enter the stablecoin sector, potentially increasing market capitalization from $250 billion to trillions.
> “I think we’ll see banks getting into the act, I think we’ll see traditional financial players getting involved in it, and that’s why the float is expected to grow from roughly 250 billion to trillions of dollars” — CITE_W_A.
Structure of the Genius Act
The bill was introduced by Senator Bill Hagerty (R-TN) earlier in February. If passed, stablecoin issuers would be required to hold full reserves in dollars or highly liquid assets, undergo regular audits, and follow stricter guidelines. It also includes oversight for foreign issuers to limit financial risks and prevent misuse.
Significance for the Global Economy
Sacks believes the bill could have global implications, as people in other countries might start using US digital dollars instead of their local currencies, thus increasing global demand for US Treasuries. Sacks’ endorsement adds more momentum to the Genius Act, which is already gaining strong support across the industry and among lawmakers, including US President Donald Trump.
The Genius Act, endorsed by experts and legislators, has the potential to reshape the landscape of stablecoins in the US and impact the global economy. A decision on its adoption is anticipated in the near future.
